In the 2nd half of 2017, the USDollar became increasingly weak compared to the Loonie. Maybe it's due to rising oil prices. In Q4 2017, USDCAD began retracing and forming a rising wedge pattern.

A wedge pattern that goes AGAINST the trend is typically a continuation pattern. As we see on the chart, the wedge was broken downwards.

Should the pattern hold, we will likely see USDCAD test support in the neighborhood of 1.21 again. What happens after that point is crucial. If it breaks through convincingly, we could see this trend continue all the way until 1.12. On the other hand, if it bounces off support nicely, it may form a double bottom pattern and the trend will reverse.